Hong Kong, Oct 9 (AP) Stocks in China slumped on Wednesday, with Shanghai's benchmark down 6.6 per cent and Hong Kong's losing 1.5 per cent as investors dumped shares to lock in profits after recent rallies driven by hopes for major economic stimulus.
Other Asian markets rose, while US futures fell back. Oil prices advanced.
Details of economic stimulus plans from officials in Beijing have failed to live up to lofty expectations that had built up after the central bank and other government agencies announced various policies to help revive the ailing property market and spur faster economic growth.
The moves announced in late September fuelled a rally that has since fizzled. A news conference by the Finance Ministry due to be held on Saturday could provide further details on government spending that so far have fallen short of what investors have been hoping for.
The Shanghai Composite lost 6.6 per cent to 3,258.86 after it gained 4.6 per cent Tuesday as it reopened from a weeklong national holiday. The CSI300 Index, which tracks the top 300 stocks traded in the Shanghai and Shenzhen markets, gave up 6.2 per cent.
The benchmark in the smaller market in Shenzhen dropped 8.1 per cent.
Hong Kong's Hang Seng index shed 1.6 per cent to 20,593.98. That followed a plunge of more than 9 per cent on Tuesday.
“A lack of new stimulus has been the cause of disappointment, with many market participants hoping that its fiscal policies will follow in the footstep of the financial bazooka' delivered in late-September, but there was clearly a step-down in yesterday's announcement,” Yeap Jun Rong of IG said in a commentary.
The Shanghai Composite is still up 5.2 per cent from a year ago and more than 10 per cent in the past three months. Hong Kong's index is up nearly 18 per cent from a year earlier.
In Tokyo, the Nikkei 225 index advanced 0.9 per cent to 39,277.96. Shares of the Japanese retailer Seven & i Holdings gained 4.7 per cent after media reported that Canadian convenience store operator Alimentation Couche-Tard had increased its takeover bid by about 20 per cent.
Japan's parliament was due to be dissolved on Wednesday to pave the way for a general election. Prime Minister Shigeru Ishiba is seeking to consolidate support after taking office last week, amid signs the Liberal Democrats' ruling coalition remains shaky after Ishiba's predecessor, Fumio Kishida, stepped down following a slew of scandals among the party's lawmakers.
Australia's S&P/ASX 200 gained 0.1 per cent at 8,187.40. South Korea's markets were closed for a public holiday.
On Tuesday, the S&P 500 rallied 1 per cent to 5,751.13. The Dow Jones Industrial Average rose 0.3 per cent to 42,080.37, while the Nasdaq composite led the way with a 1.4 per cent rally to 18,182.92.
The 10-year Treasury yield edged down to 4.02 from 4.03 per cent late Monday. The two-year yield, which more closely tracks expectations for what the Federal Reserve will do with overnight interest rates, slipped to 3.96 per cent from 3.99 per cent, late Monday, though it's still near its highest level since August.
When Treasurys are paying higher yields, investors generally become less willing to pay very high prices for stocks and other investments. And Treasury yields had been storming higher over the last week following a suite of reports showing the U.S. economy remains healthier than expected.
Such reports, including one last week showing stronger hiring by U.S. employers than forecast, raise hopes that the economy will avoid a recession. But they also force traders to ratchet back expectations for how much the Federal Reserve will cut interest rates by, now that it has widened its focus to include keeping the economy humming instead of just fighting high inflation.
Oil prices extended gains as Hezbollah fired another barrage of rockets into Israel on Tuesday which heightening concerns over escalating tensions in the Middle East. Benchmark US crude oil added 54 cents to USD 74.11 per barrel. Brent crude, the international standard, rose 64 cents to USD 77.82 per barrel.
In currency trading, the US dollar edged up to 148.38 Japanese yen from 148.20 yen. The euro fell from USD 1.0959 to USD 1.0970. (AP)
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